Editing Ingvar Carlsson (section)

===First premiership (1986–1991)===
{{further|Carlsson I cabinet|Carlsson II cabinet}}
[[File:President Ronald Reagan, Nancy Reagan, Ingvar Carlsson, and Ingrid Carlsson.jpg|thumb|left|Carlsson (right), with wife Ingrid (far left), First Lady [[Nancy Reagan]] (left), and President [[Ronald Reagan]] (far right), in a 1987 visit to the [[White House]].]]

Following the [[Olof Palme assassination|assassination]] of [[Olof Palme]] in 1986, Ingvar Carlsson became the new [[Prime Minister of Sweden|prime minister]] and party leader. In the weeks following the assassination, Carlsson garnered record-high approval ratings.{{sfn|Esaiasson|Granberg|1996|p=429}} [[Carlsson I cabinet|Carlsson's first government]] was formed on 12 March of that year.{{sfn|Elgán|Scrobbie|2015|p=xxix}}

Together with [[Minister of Finance (Sweden)|Minister for Finance]] [[Kjell-Olof Feldt]], the government turned a [[budget deficit]] of 90&nbsp;billion [[Swedish krona|SEK]] to a surplus of a few hundred billion [[Swedish krona|SEK]], which initially led to large investments and record low unemployment. {{Citation needed|reason=it is just a speculation|date=August 2013}} 1980s Social Democratic [[neoliberal]] measures—such as depressing and [[deregulating]] the currency to prop up Swedish exports during the economic restructuring transition, dropping corporate taxation and taxation on high income-earners, and switching from anti-unemployment policies to anti-inflationary policies—were exacerbated by international [[recession]], unchecked [[currency speculation]], and a centre-right government led by [[Carl Bildt]] (1991–1994), creating the fiscal crisis of the early 1990s.<ref>Englund, P. 1990. "Financial deregulation in Sweden." ''European Economic Review'' 34 (2–3): 385–393. Korpi TBD. Meidner, R. 1997. "The Swedish model in an era of mass unemployment." Economic and Industrial Democracy 18 (1): 87–97. Olsen, Gregg M. 1999. "Half empty or half full? The Swedish welfare state in transition." ''Canadian Review of Sociology & Anthropology'', 36 (2): 241–268.</ref>

However, Sweden's economy began to deteriorate in the early 1990s. In 1990 the [[First cabinet of Ingvar Carlsson|Carlsson cabinet]] resigned after failing to gain a majority for its economic policy agenda, but was reinstated immediately with a slightly changed agenda.

In 1987, he visited United States President [[Ronald Reagan]] at the [[White House]], becoming the first Swedish prime minister to visit a U.S. president since Erlander met [[John F. Kennedy]] in 1961.<ref>{{Cite web|title=Washington Talk: Briefing; A Swedish Visit|date=24 August 1987|work=The New York Times|url=https://www.nytimes.com/1987/08/24/us/washington-talk-briefing-a-swedish-visit.html|accessdate=16 August 2023}}</ref>

Going into the [[1988 Swedish general election|1988 general election]], Carlsson was viewed as less divisive along party lines compared to his predecessor Palme.{{sfn|Esaiasson|Granberg|1996|pp=432, 434}} In the election, held on 18 September, although the party lost 3 seats, Carlsson and the Social Democrats were able to remain in power, ending with 156 seats out of 349. The centre-right [[Moderate Party]], [[Liberals (Sweden)|Liberal Party]], and [[Centre Party (Sweden)|Centre Party]] collectively lost 19 seats, while the [[Left Party (Sweden)|Communist Party]] won 2 new seats and the [[Green Party (Sweden)|Green Party]] became the first new party to enter the [[Riksdag]] in decades.{{sfn|Scammon|1988|p=152}}

The [[1991 Swedish general election|1991 election]] saw losses for Sweden's left-wing parties. The Social Democrats lost 18 seats, the Left Party lost 5, and the Greens fell below the 4% threshold to maintain any seats in the Riksdag. The Liberals and Centrists both lost 11 seats. The Moderates gained 14 more seats, while two new right-wing parties, the [[Christian Democrats (Sweden)|Christian Democrats]] and [[New Democracy (Sweden)|New Democracy]], entered the Riksdag, with 26 and 25 seats respectively.{{sfn|Sander|1996|p=64}} Carlsson was then succeeded as prime minister by Moderate leader [[Carl Bildt]], who headed [[Carl Bildt cabinet|a new four-party right-wing cabinet]].<ref name=xES>{{harvnb|Elgán|Scrobbie|2015|p=xxx}}</ref>

The [[1994 Swedish general election|elections in 1994]] saw a turnaround for the Social Democrats. Although the Moderates maintained their 80 seats and saw a slight percentage increase, all of the other right-wing coalition partners lost seats, and New Democracy fell below the 4% threshold. The Social Democrats won 23 new seats and saw their percentage increase to 45%.{{sfn|Sander|1996|p=66}} As a result, the Social Democrats returned to power, with Carlsson again becoming prime minister and [[Carlsson III cabinet|a new government]].<ref name=xES/>